Question 19 of 45 Sapling Learning Complete the sentences below by dragging and

Question

Question 19 of 45 Sapling Learning Complete the sentences below by dragging and dropping items into the relevant bins The Solow will shift to the left if there arve wil shift to the left if wil shift to the right if there orve wil shit to the rightf curve The demandThe Solow growth arve The demand there is... is. there is increased governmental spending. a breakthrough technological advance decreased import growth decreased export growth. an increase in investor confidence a slump in consumer confidence production because of a war. the dispruption of a decrease in coal prices. poor crop-growing season

Explanation / Answer

(1) Solow growth curve will shift to the left if there is:

- Disruption of production because of war

- Poor crop growing season

(2) Aggregate demand curve will shift to the left if there is:

- Decreased export growth (Reason: Lower net export)

- Slump in consumer confidence (Reason: Lower consumption demand)

(3) Solow growth curve will shift to the right if there is:

- Breakthrough technological advance

- Decrease in coal price

(4) Aggregate demand curve will shift to the right if there is:

- Increased government spending

- Decreased import growth (Reason: Higher net exports)

- Increase in investor confidence (Reason: Higher investment demand)

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